The world economy is improving, but that has not translated into increased demand for expensive, elaborate advertising campaigns, according to WPP Group chief Martin Sorrell. However, the industry has the potential to rebound, and when it does, it will focus on digital, Sorrell said.
Sorrell told reporters Wednesday that the ad industry will look very different when it fully recovers from the effects of the recession, with the focus moving away from traditional, The Wall Street Journal reports.
“It’s not going to be in 30-second TV ads; it’s not going to be in newspaper or magazine ads; it’s going to be digital, it’s going to be viral and organic” Sorrell said.
One particular reason the industry won’t rebound as quickly as the economy is that marketers have grown accustomed to paying less for campaigns as agencies have been forced to slash rates in an effort to retain clients. Even Dublin-based WPP, the world’s largest agency by revenue, reported a 48 percent drop in net profit (to $177.3 million) for the first half of the year.